BIR Ruling

November 15, 1966 P.S.G. Publishing House 2190 G. Tuason, Sampaloc Manila Attention: Mr . Pablo S . Gomez Proprietor Gentlemen : This refers to your letter dated October 10, 1966 stating the following: "I, the undersigned, Filipino, of legal age, proprietor of newly organized P.S.G. PUBLISHING HOUSE, located at 2190 G. Tuason, Sampaloc, Manila, would like to request your good office a Tax Exempt Certificate for the exemption from payment of Taxes, import or local. "I understand that persons engaged in the publication or printing of any newspaper, komiks magazine, review or bulletin which appears at regular intervals and with fixed prices for subscription are automatically exempted from taxes. As for the imported raw materials and also equipments exclusively used for the consumption of the publication are exempted from payment of Import Tax. "For your information, the aforementioned publication is devoted exclusively and principally in the publication of cultural entertainment, and not in publication of advertisement." In reply thereto, I have the honor to inform you that since you are engage in the publication or printing of "komiks magazine" which appears at regular interval, with fixed prices for subscription and sale, and not devoted principally to the publication of advertisements, you are exempt from the 3% tax prescribed in Section 191 of the Tax Code. However, as regards your request for exemption from the payment of taxes on your importation of raw materials and equipment for the use of your business the same is hereby denied for lack of legal basis. The imported raw materials and equipment are subject to the compensating tax provided for in Section 190 of the Tax Code. cdtech Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue